Monumental challenges ahead for Obama administration

Barack Obama's historic election as America's first black President has been celebrated by many but now that the contest is over, the focus has shifted to the tough challenges that face the new administration. The nation's struggling economy and the on-going wars in Iraq and Afghanistan means the President-elect will have little time to rest on his laurels.

Transcript

KERRY O'BRIEN, PRESENTER: While the full import of yesterday's breathtaking election result is still sinking in across America, no doubt with Barack Obama as well, the focus has turned to the monumental challenges facing the new administration.

The nation's desperately sick economy and the on-going wars in Iraq and Afghanistan means the President-elect will have no time to rest on his laurels.

And while he prepares for the 10 week transition to office, the Republican Party is licking its wounds and looking to the future.

In a moment we'll be talking with Obama’s biographer David Mendell in Chicago.

But first this report from North America correspondent Tracy Bowden.

TRACY BOWDEN, NORTH AMERICA CORRESPONDENT: It's the morning after the night before; and it's back to business. But you can still sense the excitement.

STACIE LEE BANKS, OBAMA SUPPORTER: It really hasn't sunk in yet; it's just like, did he really... you know, this isn't a dream, this is for real and he's going to be the President. That's amazing.

TRACY BOWDEN: But even Barack Obama's staunchest fans, like florist Stacie Lee Banks, are aware that now people expect the President Elect to deliver on all that he's promised.

STACIE LEE BANKS: We hope that he lives up to the expectations because people have... they have higher expectations of him than they have for other presidents.

TRACY BOWDEN: Barack Obama's victory can be partly explained by the fact the Republican's have had one crisis after another.

Led by an unpopular President George W. Bush, the Party is blamed for the nation's economic meltdown and the ongoing wars in Iraq and Afghanistan.

But these very problems will soon be Barack Obama's to deal with.

JERRY MAYER, PUBLIC POLICY, GEORGE MASON UNIVERSITY: The first test for Barack Obama is to hit the ground running; name a cabinet fast, but not make any mistakes.

TRACY BOWDEN: With enormous pressure on Barack Obama to take action to deal with the country's economic woes, political analyst Jerry Mayer says the traditional presidential honeymoon period may be brief.

JERRY MAYER: Six months from now... I'm no economist but it seems to me quite likely that the macro numbers of our economy are going to be, if not worse, certainly no better than they are right now.

Will America blame Barack Obama, who will then have only been in office for about four months, or will they say, 'this is still the legacy of the mistakes of George Bush'?

I don't know the answer to that question.

TRACY BOWDEN: This victory was very much a vote against President George W. Bush. Today he congratulated Barack Obama and promised to work with him between now and the inauguration.

GEORGE W BUSH, US PRESIDENT: It'll be a stirring sight to watch President Obama, his wife Michelle and their beautiful girls step through the doors of the White House.

I know millions of Americans will be overcome with pride at this inspiring moment that so many have waited so long.

TRACY BOWDEN: As for the Republican Party, for a start, some suggest it needs its own version of Barack Obama.

ERNEST ISTOOK, THE HERITAGE FOUNDATION: Barack Obama, obviously, has successfully portrayed himself as a favourable face for the Democratic Party.

There is no comparable figure for the Republican Party. Yes, John McCain was the nominee, but I don't think anybody expects that John McCain is going to be the continuing leader of the Republican Party.

There's big vacuum out there; and that's part of the challenge.

TRACY BOWDEN: Former Republican congressmen Earnest Istook concedes that the Party has some soul searching and regrouping to do after the resounding message American voters have just delivered.

ERNEST ISTOOK: If you know what's the worst that could happen and then you go ahead and get through it you say, 'Ok, I've been through the worst; everything is going to be better from here. I have bottomed out'.

And I think the Republican Party has bottomed out.

TRACY BOWDEN: Neither the President Elect or John McCain spoke publically today. But Sarah Palin, it seems, can't be stopped.

SARAH PALIN, REPUBLICAN VICE PRESIDENTIAL CANDIDATE: And God bless Barack Obama and his beautiful family and the new administration coming in.

It is time that we all pulled together and worked together, and America is going to reach her destiny.

ERNEST ISTOOK: Sarah Palin has a wonderful future in the Party. You're going to see Sarah Palin retain her popularity; be in huge demand all over the country.

And actually being freed to be herself and express her own feelings and her own view points. And I think that will tell us just how strong this future is that she has.

But she definitely has a very good future.

JERRY MAYER: Sarah Palin ignited the base of the Republican Party. She brought an excitement that McCain couldn't.

But you don't win the next election by getting white Christian evangelicals on your side. You're going to have to reach out to independents, moderates and disaffected Democrats.

Sarah Palin doesn't do that at all.

TRACY BOWDEN: Sarah Palin may or may not be a candidate in the future. For now, the focus is entirely on Barack Obama and how he can turn his visions for America into realities.

BARACK OBAMA, US PRESIDENT ELECT: The road ahead will be long. Our climb will be steep. We may not get there in one year or even in one term.

But America, I have never been more hopeful than I am tonight that we will get there. I promise you we as a people will get there.

TRACY BOWDEN: Now America is waiting to see if the man who preaches change can deliver.